Exemption for recycled plastic-based fibre remanded for fresh factual review of yarn-waste popcorn and expert evidence.

Exemption for polyester staple fibre claimed to have been manufactured predominantly from plastic scrap or plastic waste, including PET bottles, required fresh factual examination because the effect of yarn waste converted into popcorn had not been conclusively established. The Tribunal noted that expert reports supported the claim that such popcorn could be treated as recycled plastic material, but its percentage contribution and role in the final process remained unclear. As the record was incomplete on these material aspects, the impugned order was set aside and the matter remanded to the adjudicating authority for reconsideration. The Tribunal expressly made no finding on merits.

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Issues: Whether the demand and denial of exemption required fresh consideration on the appellant's claim that the finished goods were manufactured predominantly from plastic waste and whether the matter should be remanded for reconsideration.

Analysis: The exemption was claimed for polyester staple fibre manufactured from plastic scrap or plastic waste including waste polyethylene terephthalate bottles. The appellant had also used yarn waste which was converted into popcorn, and the record contained reports relied upon to support the claim that such popcorn could be treated as recycled plastic material. The percentage and effect of the yarn-waste-derived popcorn in the final process had not been conclusively ascertained, and the Tribunal considered that these factual aspects, together with the expert reports, required fresh examination by the adjudicating authority. The Tribunal specifically stated that it was not expressing any view on merits.

Conclusion: The impugned order was set aside and the matter was remanded to the adjudicating authority for fresh decision after considering the appellant's contentions and the material relied upon.

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